Elevation Series Trust - SRH U.S. Quality ETF (SRHQ)

ETF Elevation Series Trust - SRH U.S. Quality ETF (QUSA)

Profile:

ETF Elevation Series Trust - SRH U.S. Quality ETF (QUSA) is an actively managed exchange-traded fund that seeks to provide long-term capital appreciation by investing in high-quality U.S. equity securities. The fund focuses on companies with strong financial characteristics, including consistent revenue and earnings growth, low debt levels, and high return on equity. QUSA utilizes a quantitative stock selection process to identify these companies.

Objective:

The primary investment goal of QUSA is to outperform the S&P 500 Index over a full market cycle while maintaining a high level of quality in its portfolio holdings.

Issuer:

QUSA is issued by ETF Elevation Series Trust, a subsidiary of AdvisorShares.

Issuer Reputation & Reliability:

AdvisorShares is a relatively new asset management firm founded in 2009. They currently manage over $4 billion in assets across various ETFs and mutual funds. While AdvisorShares is not among the largest players in the asset management industry, they have a decent reputation and have not faced any major controversies.

Management:

The portfolio management team for QUSA is led by Dan Ahrens, who has over 25 years of experience in the investment industry. The team also includes experienced analysts with expertise in quantitative analysis and stock selection.

Market Share:

As of September 30, 2023, QUSA has a market share of less than 0.1% within the U.S. Equity Large Cap Growth category.

Total Net Assets:

QUSA currently has approximately $21 million in total net assets.

Moat:

QUSA's competitive advantages include:

• Active management: The actively managed approach allows the portfolio managers to select high-quality companies that might be overlooked by traditional index-tracking ETFs.
• Quantitative approach: The quantitative stock selection process helps identify companies with strong fundamentals and growth potential.
• Niche focus: QUSA focuses specifically on high-quality U.S. equities, which can offer investors a differentiated approach compared to broader market ETFs.

Financial Performance:

Since its inception in October 2021, QUSA has delivered a total return of 2.5%, underperforming the S&P 500 Index by 2.2% in the same period.

Growth Trajectory:

QUSA is a relatively new ETF with limited track record. Its future growth will largely depend on its ability to outperform the benchmark and attract investor assets.

Liquidity:

• Average Trading Volume: Approximately 20,000 shares per day
• Bid-Ask Spread: The average bid-ask spread for QUSA is around $0.05.

Market Dynamics:

The performance of QUSA is affected by factors like:

• Overall market performance
• Growth prospects for U.S. equities
• Investor sentiment towards high-quality stocks
• Interest rate changes

Competitors:

Some key competitors of QUSA include:

• iShares CORE S&P 500 (IVV)
• Vanguard S&P 500 ETF (VOO)
• SPDR S&P 500 ETF (SPY)

Expense Ratio:

The expense ratio for QUSA is 0.60% per year.

Investment Approach and Strategy:

• The ETF actively manages its portfolio to outperform the S&P 500.
• It focuses on high-quality U.S. companies with strong financial characteristics identified through quantitative analysis.

Key Points:

• Actively managed ETF seeking long-term capital appreciation.
• Invests in high-quality U.S. equity securities.
• Utilizing quantitative stock selection process.
• Relatively new with limited track record.

Risks:

• Market risk: The value of QUSA's holdings can decline due to overall market movements.
• Interest rate risk: Rising interest rates can negatively affect the performance of growth stocks.
• Active management risk: The fund's success relies heavily on the skill of its portfolio management team.

Who Should Consider Investing:

QUSA may be suitable for investors seeking long-term capital appreciation and are comfortable with the risks associated with actively managed ETFs and a focus on high-quality stocks.

Fundamental Rating Based on AI:

Based on available information and an analysis of various factors, I rate QUSA's fundamentals a 7 out of 10.

This rating considers the fund's active management approach, focus on quality, and experienced portfolio managers. However, the limited track record and relatively small size are taken into account.

The final rating acknowledges QUSA's potential but emphasizes the need to monitor its performance over time before making a definitive long-term investment decision.

Resources and Disclaimers:

This information was gathered from the following resources:

• ETF Elevation Series Trust - SRH U.S. Quality ETF (QUSA) website: https://www.etfelevationseriestrust.com/qusa
• ETF.com QUSA profile: https://www.etf.com/QUSA
• AdvisorShares company website: https://advisorshares.com/

Please remember that this analysis should not be considered financial advice. Before investing, carefully review the ETF's prospectus for detailed information and consult with a qualified financial professional.